Starbucks UK sales play part in chain's rocketing profits

LONDON - Starbucks has reported that year-on-year net earnings soared from $25m to $217m in its second quarter, powered by the introduction of its instant coffee brand, Via.

Starbucks: profits boosted by new instant coffee brand Via
Starbucks: profits boosted by new instant coffee brand Via

Store sales in the UK grew by nearly 5% on the year, helped by the rise in users of its loyalty card. The group also announced that Via would be sold on Thomas Cook Airlines in the UK from next month .

The Seattle-based coffee company, headed by chief executive Howard Schultz, reported a 9% year-on-year increase in revenue across the business to $2.5bn in the January to March quarter.

Schultz said: "Starbucks' second-quarter results demonstrate the impact of innovation, and the success of our effort to dramatically transform our business over the past two years."

The strong performance mirrors a similarly impressive set of results in the period October to December 2009.

Outside the US, Starbucks reported revenues of $534m in the period, a 23% improvement.  Revenues in the US rose 5% on the year to $1.8bn.

Starbucks has earmarked Via as crucial to its long-term growth outside the US. It launched Via in the UK in March, claiming it to be "the first innovation in the instant category for decades."

It is also set to make its first foray into the UK chilled coffee market, with the launch of two ready-to-drink ranges in May.

It has teamed up with Arla Foods, the maker of Cravendale milk and Anchor Butter, to launch  Starbucks Discoveries chilled coffees and Starbucks Espresso & Milk drink.









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